UNIVERSITY OF FLORID A

3 1262 08486 7661 Registry No. 299-1--38

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

TEXTILE EXAMINING, SHRINKING

AND REFINISHING INDUSTRY

AS APPROVED ON AUGUST 6, 1934

3

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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Approved Code No. 497

CODE OF FAIR COMPETITION

FOR THE

TEXTILE EXAMINING, SHRINKING AND

REFINISHING INDUSTRY

As Approved on August 6, 1934

ORDER

CODE OF FAIR COMPETITION FOR TIE TEXTILE EXAMINING, SHRINKING

AND REFINISHING INDUSTRY

An application having been duly made pursuant to and in full

compliance with the provisions of Title I of the National Industrial

Recovery Act, approved June 16, 1933, for approval of a Code of

Fair Competition for the Textile Examining, Shrinking and Refinishing Industry, and hearings having been duly held thereon and

the annexed report on said Code, containing findings with respect

thereto having been made and directed to the President:

NOW, THEREFORE, on behalf of the President of the United

States, I, Hugh S. Johnson, Administrator for Industrial Recovery,

pursuant to authority vested in me by Executive Orders of the

President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference

said annexed report and do find that said Code complies in all

respects with the pertinent provisions and will promote the policy

and purposes of said Title of said Act; and do hereby order that

said Code of Fair Competition be and it is hereby approved; provided, however, that members of the Cotton Textile Industry operating under the Code of Fair Competition for the Cotton Textile

Industry and its provisions governing the shrinking, finishing, and

similar processing of Cotton Textiles shall, for the purposes of this

Code not be defined members of this Industry; and provided further, that the National Textile Finishers Association shall, within

sixty (60) days from the date of this Order, amend that part of

Article II, Section 2 of the By-Laws of said Association which provides that an applicant for membership must receive an affirmative

vote of the majority of the Board of Directors, so as to render it

inapplicable to applicants for Code Membership, and also amend

Article VIII, Sections 2 and 3 of the By-Laws of said Association to

make conviction for a Code violation in a Court of competent juris78064 -1044-34 34 (1)
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diction or non-payments of dues, or the ceasing to be a member of

the Tninduitrv the only grounds for suspension and/or expulsion of

a Code Member.

Humh S. JOHNSON,

Admtn b4tator for Industrial Recovery.

Approval reconnnenided:

WIIJAM P. FA R NSWVORTH,

Acting Division Administrator.

WASIIINGTON, D.C.,

Auoust 6, 19,3.
REPORT TO THE PRESIDENT

The PRESIDENT,

The White House.

Sm: The Public Hearing on the Code of Fair Competition for

the Textile Examining, Shrinking, and Refinishing Industry was

conducted in Washington, D.C., March 10, 1934.

Every person who requested an appearance was fairly heard in

accordance with the regulations of the National Recovery Administration.

The Industry as defined in the Code includes the services of examining, sponging or shrinking, double sponging or shrinking, decatin , london, or water shrinking and refinishing of woolen and

other woven fabrics owned by others.

FINDINGS

The Deputy Administrator in his final report to me on said Code

having found as herein set forth and on the basis of all the proceedings in this matter:

I find that:

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including

removal of obstructions to the free flow of interstate and foreign

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by

eliminating unfair competitive practice, by promoting the fullest

possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be

temporarily required), by increasing the consumption of industrial

and agricultural products through increasing purchasing power, by

reducing and relieving unemployment, by improving standards of

labor, and by otherwise rehabilitating industry.

(b) Said industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. (c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and

Subsection (b) of Section 10 thereof; and that the applicant Association is an industrial association truly representative of the aforesaid industry, and that the said association imposes no inequitable

restrictions on admission to membership therein.

(d) The Code is not designed to and will not permit monopolies

or monopolistic practices.

(3)
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(e) The Code is not designed to and will not eliminate or oppress

small enterprises and will not operate to discriminate against them.

(f) Those engaged in other steps of the economic process have not

been deprived of the right to be heard prior to approval of said Code.

For these reasons the Code has been approved.

Respectfully,

HuGH S. JOHNSON,

Administrator.

Auous'r 6, 1934.
CODE OF FAIR COMPETITION FOR THE TEXTILE EXAMINING, SHRINKING AND REFINISHING INDUSTRY

ARTICLE I-PURPOSES

To effectuate the policies of Title I of the National Industrial

Recovery Act, the following provisions are established as a Code

of Fair Competition for the Textile Examining, Shrinking, and

Refinishing Industry, and shall be the standard of fair competition

for such Industry and shall be binding upon every member thereof.

ARTICLE II-DEFINITIONS

1. The term "Textile Examining, Shrinking, and Refinishing

Industry " as used herein means and includes the services of examining, sponging, or shrinking, double sponging or shrinking, decating, london, or water shrinking and refinishing of woolen and

other woven fabrics owned by others, and such related branches

or subdivisions as may from time to time be included under the

provisions of this Code or specifically excluded therefrom by the

Administrator.

2. The term " member of the industry " includes, but without

limitation any individual, partnership, association, corporation,

or other form of enterprise engaged in the Industry either as an

employer or on his or its own behalf.1

3. The term " employee " as used herein means and includes any

person engaged in any phase of the Industry, in any capacity, receiving compensation for his services, irrespective of the nature

or method of payment of such compensation, including members

of the Industry who may do the same work as employees.

4. The term "employer " as used herein means and includes anyone by whom any such employee is compensated or employed.

5. The term " President ", "Act ", and "Administrator ", as used

herein shall mean respectively, President of the United States, Title

I of the National Industrial Recovery Act, and the Administrator

for Industrial Recovery.

ARTICLE III-Hours

1. No employee shall be permitted to work in excess of forty (40)

hours per week, nor more than eight (8) hours in any twenty-four

(24) hour period, except as herein otherwise provided.

2. No employees engaged in emergency maintenance or emergency

repair work or as watchmen shall be permitted to work in excess of

forty-four (44) hours in any one week.

1 See paragraph 2 of order approving this Code.

(5)
6

3. The provisions of this Article shall not apply to outside salesmen or to persois employed inI a n~agerial or executive capacity

who earn hot less than thirty-five ($35.00) dollars per week.

4. o employer shall knowingly engage any employee for any time

which, when totaled with that already performed with another employer or employers, exceeds the maximuni hours per week permitted herein.

ARTICLE IV--WACES

1. No manufacturing employee shall be paid at less than a rate of

forty-five cents (45 ) per hour.

2. No non-manufacturing employee shall be paid less than fourteen dollars ($14.00) for a week of forty (40) hours.

3. Persons learningv a manufacturing occupation shall be paid

not less than at a rate of forty and one-half cents (40121) per hour,

provided: that the number o? such learners shall not exceed five per

cent (5j) of the employees of any one employer and that learners

shall not be employed as such for a period in excess of six (6)

months, irrespective of whether they are employed by one or more

ellployers.

4. There shall be an equitable adjustment of wages above the minimum, unless such adjustments have heretofore been made under the

N.R.A. Weekly compensation shall not be reduced because of any

reduction in weekly hours resulting from the provisions of this

Code. All adjustments made since June 16, 1933, shall be reported to the Code Authority within 90 days of the effective date of

this Code.

5. Females employees performing substantially the same work as

male employees shall receive the same rate of pay as male employees.

6. This Article establishes the minimum rate of pay which shall

apply irrespective of whether an employee is actually compensated

on a time rate, piece work or other basis.

ARTICLE V-GENERAL LABOR PRovIsIoNs

1. No person under sixteen (16) years of age shall be employed in

the Industry. No person under eighteen (18) years of age shall be

employed in manufacturing operations. In the event of a claim of

alleged violation of this section, an employer shall be deemed to

have complied with the provisions of this section if he shall have on

file and shall submit a certificate of age issued by the duly authorized department of the State in which the employer operates, showing the age of the employee to be no less than the age required by

this section.

2. Employees shall have the right to organize and bargain collectively, through representatives of their own choosing and shall be free

from the interference, restraint or coercion of employers of labor or

their agents, in the designation of such representatives or in selforganization or in other concerted activities for the purpose of

collective bargaining or other mutual aid or protection.

3. No employee and no one seeking employment shall be required

as a condition of employment to join any company union or to

refrain from joining, organizing, or assisting a labor organization

of his own choosing.
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4. Employers shall comply with the maximum hours of labor,

numinuin rates of pay, and ether coiditions of emlployient approved

or prescribed by the President.

5. No e!i1ployer shall recla-sify employees or duties of occupat ions

performed or eiigae in aly r sO as to defeat the provlsiolis

of the Act or of this Code.

6. No provision of this Code shall supersede any law witlhii any

state which imposes more stringent requtirements on employers as

to age of employees, wages, hours of work, or as to safety. heath,

or sanitary regulations, or insurance, or tire protoectionl, O- general

woriing conditions, than are imposed by this Code.

7. All employers shall post and keep posted copies of this Code

in conspicuous places accessible to all employees. Every mimeibe'r

of the Industry shall comply with all rules and regulations relative

to the posting of provisions of Codes of Fair Competition which

may, from time to time be prescribed by the Administrator.

8. No provisions of this Article shall modify established practices

for privileges as to vacation periods, leaves of absence, or temporary

absence from work heretofore guaranteed to office employees.

9. Every employer shall provide for the safety and health of his

employees during the hours and at the places of their emplovient.

ARTIcLE VI-ORGANIZATION, POwERs, AND DUTIES OF 1lIE CODE

AUTHORITY 2

1. A Code Authority is hereby established consisting of-

(a) Six members to represent the Industry, elected by a majority

vote of the membership of the National Textile Refinishers Association. The said election shall be under the supervision of the Adininistrator or his representative.

(b) One member to represent the members of the Industry who

are unaffiliated with the National Textile Refinishers Association, to

be elected by such members by a method of election approved by the

Administrator and conducted under the supervision of the Admiinistrator or his representative.

(c) Such additional members without vote, not to exceed three

as the Administrator may appoint to represent the Administrator

for such periods as he may designate.

2. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall

(1) impose no inequitable restrictions on membership, and (2) sibmit to the Administrator true copies of its articles of association,

by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deen necessary to effectuate

the purposes of the Act.

3. In order that the Code Authority shall at all times be truly

representative of the Industry, and in other respects comply with

the provisions of the Act, the Administrator may prescribe such

hearings as he may deem proper; and thereafter if lie shall find that

the Code Authority is not truly representative or does not in other

respects comply with the provisions of the Act, may require an

2 See paragraph 2 of order approving this Code.
8

appropriate modification in the method of selection of the Code

Authority.

4. Nothing contained in this Code shall constitute the members of

the Code Authority partners for any purpose. Nor shall any member of the Code Authority be liable in any manner to anyone for

any act of any other member, officer, agent, or employee of the Code

Authority, exercising reasonable diligence in the conduct of his

duties hereunder, be liable to anyone for any action or omission to

act under this Code, except for his own wilful malfeasance, or

nonfeasance.

5. If the Administrator shall at any time determine that any

action of the Code Authority or any agency thereof may be unfair or

unjust or contrary to the public interest or to the Act, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further

consideration by such Code Authority or agency pending final action, which shall not be effective unless the Administrator approves, or

unless he shall fail to disapprove after thirty days' notice to him

of intention to proceed with such action in its original or modified

form.

POWERS AND DUTIES

6. Subject to such rules and regulations as may be issued by the

Administrator, the Code Authority shall have the following powers

and duties, in addition to those authorized by other provisions of

this Code.

(a) To insure the execution of the provisions of this Code and

to provide for the compliance of the Industry with the provisions of

the Act: Provided, however, that this shall not be construed to

deprive duly authorized governmental agencies of their power to

enforce the provisions of this Code or of the Act.

(b) To adopt by-laws and rules and regulations for its procedure.

(c) To obtain from members of the Industry such information

and reports as are required for the administration of the Code;

and in addition to information required to be submitted to the Code

Authority, members of the Industry, subject to this Code, shall

furnish such statistical information as the Administrator may deem

necessary for the purposes recited in Section 3 (a) of the Act, to

such Federal and State Agencies as the Administrator may designate; provided that nothing in this Code shall relieve any member

of the Industry of any existing obligations to furnish reports to

any government agency. No individual reports shall be disclosed

to any other member of the Industry or any other party

except to such other governmental agencies as may be directed by the

Administrator.

(d) to use such trade associations and other agencies as it deems

proper for the carrying out of any of its activities provided for

herein, provided that nothing herein shall relieve the Code Authority

of its duties or responsibilities under this Code and that such trade

assocIations and agencies shall at all times be-subject to and comply

with the provisions hereof:

(e) To ionke recommendations to the Administrator for the coordination of the Administration of this Code with such other Codes,

if any, as may be related to or affect members of the Industry.
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(f) (1) It being found necessary to support the Administration

of this Code, in order to effectuate the policy of the Act and to

maintain the standards of fair competition established hereunder,

the Code Authority is authorized:

(a) To incur such reasonable obligations as are necessary

and proper for the foregoing purposes and to meet such obligations out of funds which shall be held in trust for the purposes

of the Code and raised as hereinafter provided:

(b) To submit to the Administrator for his approval, subject

to such notice and opportunity to be heard as he may deem

necessary:

1. An itemized budget of its estimated expenses for the foregoing purposes, and

2. An equitable basis upon which the funds necessary to support such budget shall be contributed by members of the

Industry.

(c) After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable

contribution as above set forth by all members of the Industry

and to that end, if necessary, to institute legal proceedings

therefor in its own name.

(2) Each member of the Industry shall pay his or its equitable

contribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules

and regulations pertaining thereto issued by the Administrator.

Only members of the Industry complying with the Code and contributing to the expenses of its administration as hereinabove provided, shall be entitled to participate in the selection of the members

of the Code Authority or to receive the benefits of any of its voluntary

activities.

(3) The Code Authority shall neither incur nor pay any obligation

in excess of the amount thereof as estimated in its approved budget,

except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item for expenditures in excess of

prior budget estimates except those which the Administrator shall

have so approved.

(g) To recommend to the Administrator any action or measures

deemed advisable, including further fair trade-practice provisions to

govern members of the Industry in their relations with each other

or with other industries, measures for industrial planning, and stabilization of employment; and including modifications of this Code

which shall become effective as part hereof upon approval by the

Administrator after such notice and hearing as he may specify.

(h) To appoint a trade practice committee which shall meet with

the trade practice committees appointed under such other codes as

may be related to the Industry for the purpose of formulating fair

trade practices to govern the relationships between employers under

this Code and under such other Codes to the end that such fair trade

practices may be proposed to the Administrator as amendments to

this Code, and such other Codes.

(i) There shall be established an Industrial Relations Committee

for the Industry, which shall consist of an equal number of representatives of employers and employees and an impartial chairman.
10

The Administrator shall appoint such impartial chairman upon the

failure of the Committee to select one by agreement. If no truly

representative labor organization exists the employee members of

such board may be nominated by the Labor Advisory Board of the

NRA and appointed by the Administrator. The employer representatives shall be chosen by the Code Authority. Such committee

shall deal with complaints and disputes relating to labor in accordance with rules and regulations issued by the Administrator. The

Industrial Relations Committee may establish such divisional, regional, and local industrial adjustment agencies as it may deem

desirable, each of which shall be constituted in like manner as the

Industrial Relations Committee.

(j) To appoint a committee to meet with Committees appointed

by the Code Authorities of other industries to bring about uniformity in standards of employment and processing, wherever textile exainiing shrinking and refinishing is performed.

(k) To appoint a committee on safety and health which will study

the number and causes of accidents and health standards in the industry and report within six (6) months after the effective date of

this Code a comprehensive program to carry out the requirements of

the Administrator in the administration of Article V, Section 9.

(1) To appoint a committee to meet with committees of other

Code Authorities to study and adjust any problems of overlapping

jurisdiction of Codes and to determine specific procedures to be followed where certain processes in industries covered by other Codes

are or may be the same as processes covered by this ode, provided

that determinations of said committee or committees shall be subject

to review by the Administrator.

ARTICLE VII

The Code Authority shall cause to be formulated methods of cost

finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administrator for review.

If approved by the Administrator, full information concerning such

methods shall be made available to all members of the Industry.

Thereafter, each member of the Industry shall utilize such methods

to the extent found practicable. Nothing herein contained shall be

construed to permit the Code Authority, any agent thereof, or any

member of the Industry to suggest uniform additions, percentages

or differentials or other uniform items of cost which are designed

to bring about arbitrary uniformity of costs or prices.

ARTICLE VIII-TRADE-PRACTICE RULES

1. No member of the Industry shall publish advertising (whether

printed, radio, display, or of any nature), which is misleading or

inaccurate in any material particular, nor shall any member in any

way misrepresent any services, credit terms, values, policies, or the

nature or form of the business conducted.

2. No member of the Industry shall knowingly withhold from or

insert in any invoice any statement which makes it inaccurate in

any material particular.
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3. No member of the Industry shall publish advertising which

refers inaccurately in any material particular to any competitors

or their goods, prices, values, credit ternis, policies, or services.

4. No member of the Industry shall publiAh or circtilIto unj iust

or unwarranted threats of legal proceedings which tend to or lave

the effect of harassing competitors, or intimidating any of their

customers.

5. No member of the Industry shall secretly offer or mnIke 1nv

payment or allowance of a rebate, refund, commission. cred it. uIearned discount, or excess allowance, whether in the form of money

or otherwise, nor shall a member of the Industry secretly offer or

extend to any customer any special service, privilege, or 'price not

extended to all customers of the same class.

6. No member of the Industry shall give, permit to be given, or

offer to give, anything of value for the purpose of infliencing or

rewarding the action of any employee, agent, or representative of

another in relation to the business of the employer of such employee, the principal of such agent of the represented plart. without the knowledge of such employer, principal or party. This

provision shall not be construed to prohibit a general distribution of

articles commonly used for advertising, except so far as such articles

are actually used for commercial bribery as hereinabove defined.

7. No member of the Industry shall attempt to induce the breach

of contract between a competitor and his customer or source of

supply; nor shall any such member interfere with or obstruct the

performance of such contractual duties or services.

ARTICLE I.X-MODIFICATION

1. This Code and all the provisions thereof are expressly made

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time

to cancel or modify any order, approval, license, rule, or regulation

issued under Title I of said Act.

2. This Code, except as to provisions required by the Act. may

be modified on the basis of experience or changes in circumstances,

such modifications to be based upon application to the Administrator

and such notice of hearing as he shall specify, and to become effective

on approval by the Administrator.

ARTICLE X-MONOPOLIES

This Code shall not be construed or applied to promote or permit

monopolies or monopolistic practices or to eliminate or oppress or

discriminate against small enterprises.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective on the second Monday after

approval by the Administrator.

Approved Code No. 497.

Registry No. 299-1-38.

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